Senators replace Volcker Rule with Volcker Amendment

The senators today toughened the rule by using it to bar depository banks, bank holding companies, and their affiliates and subsidiaries from high-risk trading. It also requires massive capital reserves for non-banks making high-risk trades, and prohibits finance firms from betting against securities sold to their clients. 

Volcker approves of the amendment, saying in prepared remarks that he was “very encouraged by the efforts” of the senators to “clarify and enhance the proprietary trading restrictions” already in the reform bill authored by Senate Banking Chairman Chris Dodd (D-Conn.). 

Dodd also supports the amendment. 

Merkley and Levin expect there to be a vote on adding the measure to the reform bill.